BEIJING (MarketWatch) -- A senior official with China's industry ministry said Friday he has reminded Australian officials that China remains the world's biggest buyer of iron ore, signaling Beijing's support for the country's steelmakers in tough negotiations with global miners on annual benchmark prices.
Ministry of Industry and Information Technology Vice Minister Miao Wei told an annual meeting of the China Iron and Steel Association that he had recently brought up the issue of iron ore price negotiations with an unidentified Australian embassy official.
"The (Australian embassy) official told me that this is a commercial matter, and the (Australian) government is not involved," Miao said.
However, Miao said he then reminded the official that China was the world's biggest customer for iron ore, "but buys at the most expensive prices."
The miners are seeking increases said to range from 30%-40% over last year's prices.
The remarks illustrate China's continuing efforts to apply pressure on Australian miners Rio Tinto Ltd. (RIO.AU) and BHP Billiton Ltd. /quotes/comstock/13*!bhp/quotes/nls/bhp (BHP 67.76, -0.65, -0.95%) . During last year talks, four Rio Tinto employees were arrested in China on charges of commercial spying and bribery.
Source:marketwatch.com/
Friday, February 5, 2010
China vying with Australia over iron-ore prices
BEIJING (MarketWatch) -- A senior official with China's industry ministry said Friday he has reminded Australian officials that China remains the world's biggest buyer of iron ore, signaling Beijing's support for the country's steelmakers in tough negotiations with global miners on annual benchmark prices.
Ministry of Industry and Information Technology Vice Minister Miao Wei told an annual meeting of the China Iron and Steel Association that he had recently brought up the issue of iron ore price negotiations with an unidentified Australian embassy official.
"The (Australian embassy) official told me that this is a commercial matter, and the (Australian) government is not involved," Miao said.
However, Miao said he then reminded the official that China was the world's biggest customer for iron ore, "but buys at the most expensive prices."
The miners are seeking increases said to range from 30%-40% over last year's prices.
The remarks illustrate China's continuing efforts to apply pressure on Australian miners Rio Tinto Ltd. (RIO.AU) and BHP Billiton Ltd. /quotes/comstock/13*!bhp/quotes/nls/bhp (BHP 67.76, -0.65, -0.95%) . During last year talks, four Rio Tinto employees were arrested in China on charges of commercial spying and bribery.
Source:marketwatch.com/
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